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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 408.23+2.3%Dec 22 4:00 PM EST
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To: TobagoJack who wrote (9426)9/18/2006 9:33:56 PM
From: Snowshoe  Read Replies (1) of 218685
 
The 35% fluctuation on the higher quality residential house properties is just a blip for anyone with a steady, reliable income.

However, the condo market gets very weird in an extreme downturn like we had. Once the ratio of owner occupancy in a condo project drops below a certain percentage, lenders refuse to finance individual condo sales in that project! At this point most of the remaining occupants walk out, leaving the mortgage holders holding the bag.

Eventually the smell of opportunity lures the "vulture capitalists", who begin circling the landscape and peering down with their beady eyes at the putrid carcasses of condos and strip malls. These are bought at 20%-40% of the original valuation, and then rehabbed. Some of the condos are sold after the rehab, but many are rented out as apartments, and eventually unloaded a decade or two later during some future real estate boom.
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